DraftKings has signed a definitive agreement to acquire Golden Nugget Online Gaming in a transaction that has a capital value of approximately $1.56 billion. Upon purchase, DraftKings will leverage the Golden Nugget brand, online gaming product experience and existing combined database of over five million customers.
In addition, DraftKings also entered into a commercial agreement with Fertitta Entertainment, the group that owns Houston Rockets, Golden Nugget and Landry’s. This will include marketing integrations, expanded retail sports betting presence and the option to gain market access through select Golden Nugget casinos.
DraftKings will also become the NBA basketball team’s exclusive fantasy sports, sports betting and online gaming partner, and plans to open a betting service at the Toyota Center, pending state legalization and other regulatory approvals.
“The acquisition of Golden Nugget Online Gaming, a brand that is synonymous with online gaming and entertainment, will immediately enhance our ability to reach a broader base of consumers,” said Jason Robbins, CEO and Chairman of the Board of Directors of DraftKings.
As an official statement, the company expects to implement a multi-brand strategy that will increase cross-selling opportunities and drive greater market share and revenue growth.
DraftKings estimates that the conditions to close the deal will be achieved by 2022
As part of the transaction, DraftKings will reorganize the partnership and form a new one called New DraftKings. Later, the intention is for this company to be renamed DraftKings Inc.
The transaction is subject to approval by Golden Nugget Online Gaming shareholders, obtaining regulatory licenses and other conditions, which should be ready by the first quarter of next year.
“This transaction will add great value to shareholders as the two market leaders merge to create a leading global player in digital sports, entertainment and online gaming,” explained Tilman Fertitta, President and CEO of Golden Nugget Online Gaming.
